After Big Gains Analysts Say Caterpillar Can Go Higher Still

Alacra Pulse Check Blog submits: By Sheena Lee
Caterpillar (CAT) may not be the most glamorous of companies, but its performance has been impressive, capped by stellar fourth quarter earnings. The heavyweight equipment maker’s cash flow rose to an all-time record, helped by strong demand in markets like China, Latin America and Australia. Caterpillar’s stock price has almost doubled over the last year, yet analysts think it still has room to move higher.

The median price based on the the 14 most recent targets tracked by Alacra Pulse is $116.25, increasing from $95 in our November prognosis and 16% higher than Wednesday’s closing price of $100.02. The mean target has risen to $112.75 from $93.53. Out of the 14 analysts, 11 have a Buy rating and three have a Neutral rating.

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As is customary for the heavy-industrial equipment manufacturer, Caterpillar yesterday reported its retail sales, one day ahead of earnings, and as we discussed, the number was solid with Caterpillar reporting the longest positive streak in retail sales going back 51 months.

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